ࡱ>  l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1 Courier New1 Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)6 0%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0)                + ) , *   Ј ~~ ؈ ~~#؈ ~~ ؈ ~~8#܈ ~~9#܈ ~~3#܈ ~~7#܈ ~~4#܈ ~~83ffff̙̙3f3fff3f3f33333f33MTS SYSTEMS CORPORATION&/Securities registered pursuant &8EFor the Year Ended September 30igOwned PropertycLeased PropertyPART II&Issuer Purchases of Equity Secu&"COMPARISION OF 5 YEAR CUMULATIV&COMPARISION OF 5 YEAR CUMUL (1)&3COMPARISION OF 5 YEAR CUMUL (2)&,]COMPARISION OF 5 YEAR CUMUL (3)&COMPARISION OF 5 YEAR CUMUL (4)0Results of OperationsRevenue Revenue (1)U Gross Profit$Selling and Marketing Expense&General and Administrative Expe&7Research and Development ExpensPIncome from Operations hInterest Expense Net>Other Income Expense Net#dIncome Tax Provision BenefitĮ Net Income Results of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)$2Selling and Marketing Exp (1)&KGeneral and Administrative (1)&ScResearch and Development Ex (1)!{Income from Operations (1) Results of Operations (2)Ķ Revenue (4) Revenue (5)Gross Profit (2)$Selling and Marketing Exp (2)&FGeneral and Administrative (2)&0Research and Development Ex (2)!HIncome from Operations (2) BaResults of Operations (3) Revenue (6) Revenue (7)cGross Profit (3)$Selling and Marketing Exp (3)&General and Administrative (3)&Research and Development Ex (3)! 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Income from Operations (5)?&Contractual Obligations&gDQuarterly Financial Information&mForeign Currency Exchange RatesPART IIIPART IV PART IV (1) PART IV (2)& :Index to Consolidated Financial"YConsolidated Balance Sheets&QConsolidated Statements of Inco&LConsolidated Statements of Comp&hConsolidated Statements of Shar& Consolidated Statements of Cash[ Inventoriesns Property and Equipment Warranty Obligations Earnings Per Common Share!u Property and Equipment (1) Goodwill Intangible Assets Intangible Assets (1)&+2 Assets and Liabilities Measured&N Assets and Liabilities Meas (1)"j Other Financial Instruments&A Other Financial Instruments (1)& NOTE 4 DERIVATIVE INSTRUMENTS A& NOTE 4 DERIVATIVE INSTRUMEN (1)&! NOTE 4 DERIVATIVE INSTRUMEN (2)& Cash Flow Hedging Currency Risk Interest Rate Swaps! NOTE 5 FINANCING== Interest Rate Swaps (1)&uS Future Maturities of Longterm D&i Stockbased Compensation ExpenseK Stock Options Stock Options (1)&h Restricted Stock Restricted Sto& Restricted Stock Restricted (1)#` Defined Benefit Pension Plan#V Defined Benefit Pension (1)#2 Defined Benefit Pension (2)#H Defined Benefit Pension (3)#` Defined Benefit Pension (4)#v Defined Benefit Pension (5)#ƍ Defined Benefit Pension (6)# Defined Benefit Pension (7)q NOTE 8 INCOME TAXES NOTE 8 INCOME TAXES (1)W NOTE 8 INCOME TAXES (2)f NOTE 8 INCOME TAXES (3)+ NOTE 8 INCOME TAXES (4)E Share Issuance+^ Tangible Equity Units&\w NOTE 10 OTHER COMPREHENSIVE INC& NOTE 10 OTHER COMPREHENSIVE (1)& NOTE 10 OTHER COMPREHENSIVE (2)& NOTE 11 BUSINESS SEGMENT INFORM&NOTE 11 BUSINESS SEGMENT IN (1)%t-Fiscal Year 2014 Restructuring%GKFiscal Year 2014 Restructu (1)%2pFiscal Year 2014 Restructu (2) IPCB Group Inc Acquisition$PCB Group Inc Acquisition (1)&պPro Forma Financial Information&cPro Forma Financial Informa (1)Operating Leases&XSchedule II Summary of Consolid&Computation of Ratio of Earningx>As of September 30 2017 l  K/  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 0} +      MTS SYSTEMS CORP 10-K 11/27/2017MTS SYSTEMS CORPORATION    Minnesota  41-0908057$ (State or other jurisdiction, $(I.R.S. Employer Identification No.)) !of incorporation or organization)  14000 Technology Drive~ `Eden Prairie, Minnesota0((Address of principal executive offices) (Zip Code)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0wk_GO,=PF0*8X> @ l  D  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } y#} 1      MTS SYSTEMS CORP 10-K 11/27/2017C;Securities registered pursuant to Section 12(b) of the Act:   Title of each class1 )Name of each exchange on which registered% Common Stock, $0.25 par value# The NASDAQ Stock Market LLC % (NASDAQ Global Select Market) $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(Tk_SG;#J>2 =PF0*8X> @ l  <v^f  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } y } :}  <     MTS SYSTEMS CORP 10-K 11/27/2017-%For the Year Ended September 30, 2017    Table of Contents     PART I   Item 1.Business~ Item 1A. Risk Factors~ Item 1B.!Unresolved Staff Comments~ 6Item 2. Properties~ :Item 3.Legal Proceedings~ BItem 4.Mine Safety Disclosures~ BPART IIItem 5..&Market for Registrant's Common Equity,~ F.&Related Stockholder Matters and Issuer&Purchases of Equity SecuritiesItem 6.Selected Financial Data~ RItem 7.,$Management's Discussion and Analysis~ ^80of Financial Condition and Results of OperationsItem 7A.0(Quantitative and Qualitative Disclosures~ About Market RiskItem 8..&Financial Statements and Supplementary~ Dlui]Q-u;;O< !"#$%&'()*+,-./0123456789:;  Data!Item 9.5!-Changes in and Disagreements With Accountants~ !"."&on Accounting and Financial Disclosure#Item 9A.#Controls and Procedures~ #$Item 9B.$Other Information~ $%%%&PART III'''(Item 10.3(+Directors, Executive Officers and Corporate~ ()) Governance*Item 11.*Executive Compensation~ *+Item 12.0+(Security Ownership of Certain Beneficial~ +,5,-Owners and Management and Related Stockholder--Matters.Item 13.7./Certain Relationships and Related Transactions,~ ./!/and Director Independence0Item 14..0&Principal Accountant Fees and Services~ 01112PART IV3334Item 15.24*Exhibits and Financial Statement Schedules~ 45Item 16.5Form 10-K Summary~ 566 Signatures~ 678$9____________________________1:)Created by Morningstar Document Research.0;(http://documentresearch.morningstar.com/<LlWe^=PF0*8X> @B;;::9922&&   l  %  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Leased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } <(} 1} } $ %     MTS SYSTEMS CORP 10-K 11/27/2017Owned Property     Location Use of Facility  Approximate    Square Footage& Eden Prairie, Minnesota (U.S.)/ 'Corporate headquarters and primary Test~   " manufacturing and researchDepew, New York (U.S.)Sensors manufacturing~ b0(Sensors manufacturing, sales and service~ administrationSensors manufacturing~ ]#Cary, North Carolina (U.S.)1)Sensors manufacturing, research and sales~ "and service administrationProvo, Utah (U.S.)0(Sensors sales and service administration~ "Sensors manufacturing~ )!Farmington Hills, Michigan (U.S.)0(Sensors manufacturing, sales and service~ administration"Lancaster, New York (U.S.)0(Sensors sales and service administration~ Berlin, Germany0(Test manufacturing and sales and service~ eadministrationShanghai, China-%Test manufacturing, sales and service~ administrationShenzhen, China/'Test manufacturing, research, sales and~ service administration Total~ 9D lth8= T.q?w\ !"#$ !$"____________________________1#)Created by Morningstar Document Research.0$(http://documentresearch.morningstar.com/ P=PF0*8X> @$$##"" l  4h  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned Property PART II!Issuer Purchases of Equity 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Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } '} $ } =} $ } I } $ }  } $ 4     MTS SYSTEMS CORP 10-K 11/27/2017Leased Property         Location  Use of Facility  Lease   Approximate     Expires  Square Footage% Swartz Creek, Michigan (U.S.) ' Test manufacturing and research ~  ~ }  Latham, New York (U.S.) 0 (Sensors manufacturing, sales and service ~  ~ "N administration#Cary, North Carolina (U.S.)Sensors manufacturing~ ~ }&Halifax, North Carolina (U.S.)0(Sensors manufacturing, sales and service~ ~ administration( Lexington, North Carolina (U.S.)Test manufacturing~ ~ Cincinnati, Ohio (U.S.)/'Sensors manufacturing, warehouse, sales~ ~ "and service administration;3Sensors warehouse, sales and service administration~ ~ 'San Clemente, California (U.S.);3Sensors warehouse, sales and service administration~ ~ bmBeijing, China-%Test sales and service administration~ ~ ]0(Sensors sales and service administration~ ~ "NShanghai, China.&Test sales, service administration and~ ~ "assembly-%Test sales and service administration~ ~ bm)!Test land under Shanghai facility~ " ~  Shenzhen, China( Test manufacturing and warehouse~ ~ "( Test manufacturing and warehouse~ ~ )!Test land under Shenzhen facility~ ~ bDlsg#p>1{X  !"#$%&'()*+,-./0123 Creteil, France - %Test sales and service administration ~  ~  !Huckelhoven, Germany!0!(Sensors sales and service administration!~ !!~ !!"Ludenscheid, Germany"1")Sensors manufacturing, research and sales"~ ""~ ""##"#and service administration$$0$(Sensors sales and service administration$~ $$~ $B$%%%Sensors manufacturing%~ %%~ %B%& Tokyo, Japan&-&%Test sales and service administration&~ &&~ &bm&''0'(Sensors sales and service administration'~ ''~ '"N'(Sungnam, South Korea(.(&Test sales, service administration and(~ ((~ ( ()))assembly*Guildford, U.K.*-*%Test sales, service and manufacturing*~ **~ *}*+Berlin, Germany+'+Test land under Berlin facility+~ + +~ ++,Other Locations 1,0,(Test and Sensors other sales and service,,,~ ,"0,---administration .Total.....~ .)./0$1____________________________12)Created by Morningstar Document Research.03(http://documentresearch.morningstar.com/, |h']O%a4[=PF0*8X> @*332211   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial 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QuarterRQ@QK@Second QuarterLO@RQH@ Third Quarterq= ףN@ףp= D@Fourth QuarterLI@QKE@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:]{o4]Ch\P(=PF0*8X> @      l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of 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FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension 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MTS SYSTEMS CORP 10-K 11/27/20176.COMPARISION OF 5 YEAR CUMULATIVE TOTAL RETURN*                         Fiscal Year 1- %(in thousands, except per share data) ~  ~  ~ ~ ~ z ~ v Operating Results           Revenue ~ 0  ~ '  ~ zk"  ~ q"  ~ ~"  Gross profit~ s~  ~  vg   ~ n ~ (Gross margin %333333C@ %A@ %  33333sC@  % C@ %YD@ %( Research and development expense~ "~  ~  fr  ~ t~ rd/'Research and development expense as a %@ %333333@ %  @  % @ %~  % of revenue!Effective income tax rate~  %~ J %  3333337@  % <@ %;@ % Net income~ ~  ~  Z  ~ f~ :$Net income as a % of revenue @ %@ %  333333 @  % @ %ffffff$@ %Earnings per share    BasicQ?Q?  = ףp=@  Gz@Q @Diluted(\?333333? ~    ףp= @Q @-%Weighted average shares outstanding 2    Basic~ )~ n ~  "  ~ ~ Diluted~ +~  ~    ~ ~ %Depreciation and amortization~ +~ 6x ~  I  ~ >-~ 6Financial Position    Total assets~ H~ ҂H ~  ~   ~ ¿~ 6Interest-bearing debt 3~ ~  ~  J  ~ ~ "Dlxl`THLh,;QK5AmnkN !"#$%&'()*+,-" Total shareholders' equity ~ +  ~ 2  ~ z  ~ >  ~ f 5!-Interest-bearing debt as a % of shareholders'!!fffff[@ !%!!]@ !%! ! ffffff @ ! %! !3333337@ !%!!333333+@ !%"equity#Return on equity 4##@ #%##ffffff%@ #%# # 1@ # %# #ffffff0@ #%##9@ #%$$Return on invested capital 5$$333333@ $%$$333333!@ $%$ $ /@ $ %$ $.@ $%$$6@ $%%Other Statistics%%%%% % % %%%%&Backlog of orders at year-end&~ &B&&~ &n&& ~ & ֋& & ~ &&&&~ &&$'Dividends declared per share''333333?'''333333?'' ' 333333?' ' '333333?'''333333?'(Capital Expenditures(~ (((~ (E(( ~ ( 6 ( ( ~ (9((~ (()*$+____________________________1,)Created by Morningstar Document Research.0-(http://documentresearch.morningstar.com/   rs=PF0*8X> @w--,,++(((((( (((('''''' ''''&&&&&& &&&&$$$$$$ $$$$###### ####!!!!!! !!!!                            l  $Y;Z  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and 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PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } U5} $ } $} $ } $} $ } $} $ } $} $ } $ $     MTS SYSTEMS CORP 10-K 11/27/20176.COMPARISION OF 5 YEAR CUMULATIVE TOTAL RETURN*                         Fiscal Year (in thousands) ~  ~  ~ ~ ~ z ~ v  Net income ~   ~   ~ Z  ~ f  ~ : , $Acquisition-related expenses, net of ~ J  ~ jr   -   -   -  tax,$Acquisition integration expense, net~ )~     -   - -of tax4,Acquisition inventory fair value adjustment,~ V\~ X   -   - - net of tax)!Restructuring expense, net of tax~ .~    -  ~ bD -/'China investigation expense, net of tax~ vi -   -   - -$Interest expense, net of tax~ vi~ ^ ~     ~  ~ Adjusted net income *~ ~  ~  V  ~ ~     ,$Total beginning shareholders' equity~ 2~ z ~  >  ~ f~ ~ )!Total ending shareholders' equity~ +~ 2 ~  z  ~ >~ f-%Total beginning interest-bearing debt~ ~ J ~    ~ " -*"Total ending interest-bearing debt~ ~  ~  J  ~ ~ "Sum of invested capital~ tm~ bG ~  2w$  ~ 6%~ ¡"Average invested capital *~ j6~ F# ~  ;  ~ ~ $Return on invested capital *333333@ %333333!@ %  /@  % .@ %6@ %Dulxl`THL !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/ <=PF0*8X> @T##""!!                           l  }  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned 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Research.0(http://documentresearch.morningstar.com/8}xl`TH'bJ"wW4(=PF0*8X> @X                            l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research 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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4) Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue 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$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>0ymaeU 3}c=PF0*8X> @6                   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit 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Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                       Increased / (Decreased) (in thousands) ~  ~  ~   % Americas ~   ~ nX   ~ v  ~  % Europe ~    ~    ~    ffffff1@ % Asia~ BT~ T ~    @ % Total Revenue~ 0~ ' ~  Bi  3333335@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.I{oDg=PF0*8X> @          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL 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UI==PF0*8X> @z          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross Profit!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) 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A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017*"General and Administrative Expense                       Increased / (Decreased) (in thousands) ~  ~  ~   %" General and administrative ~ W  ~ ;  ~    L:@ %  % of Revenue  333333&@ %  ffffff%@ %    $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`T)G;/=PF0*8X> @j          l  +O  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative ExpeIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017( Research and Development Expense                       Increased / (Decreased) (in thousands) ~  ~  ~   % Research and development ~ "  ~   ~     C@ %  % of Revenue  @ %  333333@ %    $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hznbV+K?3 =PF0*8X> @j          l  Ig  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross 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Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Income from Operations                       Increased / (Decreased) (in thousands) ~  ~  ~   % Income from operations ~ X  ~   ~ &   L?@ %  % of Revenue ~  %  @ %    $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`5[OC=PF0*8X> @j          l  y~  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and 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Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Interest Expense, Net                       Increased / (Decreased) (in thousands) ~  ~  ~   % Interest expense, net ~   ~   ~ \   qp@ % $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(Tyma6=PF0*8X> @Z        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned 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(1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } !}  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017#Other Income (Expense), Net                       Increased / (Decreased) (in thousands) ~  ~  ~   %# Other income (expense), net ~ r  ~   ~    4 % $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(&Tsg[0=PF0*8X> @Z        l  ݭ  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross 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D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017&Income Tax Provision (Benefit)                         Increased / (Decreased) (in thousands) ~  ~  ~   %& Income tax provision (benefit) ~   ~  ^  ~    ` % Effective rate ~  % ~ J % ~    ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h|pdX# =PF0*8X> @z          l  #  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision BenefitResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual 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Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } -}  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017 Net Income                         Increased / (Decreased)- %(in thousands, except per share data) ~  ~  ~   %  Net income ~   ~   ~ Z   ! %" Diluted earnings per share  (\?   333333?   (\ؿ   fffff6 %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl)=PF0*8X> @r         l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net Income Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and 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Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $      MTS SYSTEMS CORP 10-K 11/27/2017Results of Operations                            Estimated   (in thousands) ~   Business % Acquisition / Restructuring 2  Currency ~        Change       Translation Revenue ~ ^  ~ &   $-  ~   ~ &D  Cost of sales~ p~  ~  &  ~ ~  Gross profit~ BT ~ ! ~    ~ ~ `  Gross margin@@ %   @@ %   Operating expenses   Selling and marketing~ ^B~  ~    ~ r~ J@"General and administrative~ "~  ~    ~ ~  Research and development~ 0~    -  ~ ~  Total operating expenses~  ~ & ~    ~ ~ VIncome from operations~ :~ m ~  Z  ~ ~ R{$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>]0ymae9@3RpxP=PF0*8X> @5                   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development 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Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined 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CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp 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AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                       Increased / (Decreased) (in thousands) ~  ~  ~   % Americas ~   ~ &  ~ f   '@ % Europe ~ ±  ~   ~ *   ) % Asia~ $~  ~   j    % Total Revenue~ ^~ &D ~  :   %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.M{oDc=PF0*8X> @          l  1  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017 Gross Profit                         Increased / (Decreased) (in thousands) ~  ~  ~   %  Gross profit ~ BT   ~ `   ~     %  Gross margin  @@ %  @@ %  ?   ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hvj'=1%=PF0*8X> @z          l  ;J  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ } U} $      MTS SYSTEMS CORP 10-K 11/27/2017%Selling and Marketing Expense                       Increased / (Decreased) (in thousands) ~  ~  ~   % Selling and marketing ~ ^B  ~ J@  ~    ? %  % of Revenue  +@ %  333333+@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h}qeY.9-!=PF0*8X> @j          l  |b  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017*"General and Administrative Expense                       Increased / (Decreased) (in thousands) ~  ~  ~   %" General and administrative ~ "  ~   ~    333335@ %  % of Revenue  ffffff$@ %  ffffff @ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`T)/#=PF0*8X> @j          l  z  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash 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COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017( Research and Development Expense                         Increased / (Decreased) (in thousands) ~  ~  ~   % Research and development ~ 0  ~   ~    ffffff&@ %  % of Revenue  333333@ %  333333 @ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/* hznbV=PF0*8X> @j          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Income from Operations                         Increased / (Decreased) (in thousands) ~  ~  ~   % Income from operations ~ :  ~ R{  ~ C   = %  % of Revenue  @ %  @ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`'=PF0*8X> @j          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $      MTS SYSTEMS CORP 10-K 11/27/2017Results of Operations                           Estimated   (in thousands) ~   Business   Acquisition /  Currency ~        Change  Restructuring 3   Translation Revenue ~ rS  ~ 6  ~   ~ "   ~ jj  Cost of sales~ 4 ~ z ~    ~ ~ ^ Gross profit~ ~  ~   Y  ~  ~  Gross margin33333sG@ %    @F@ %   Operating expenses    Selling and marketing~ f]~  ~  v  ~ f~ "General and administrative~ :5~ K ~  A  ~ N~ ~ Research and development~ ~ " ~  bp  ~ ~ ^z Total operating expenses~ b~ N\ ~  w  ~ ~ ҭIncome from operations~ z~ r ~  ^  ~ r~ >$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>Q0ymaeU 3Y$@^|\=PF0*8X> @6                   l  "  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                         Increased / (Decreased) (in thousands) ~  ~  ~   % Revenue ~ rS  ~ jj  ~     yZ@ % $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(T{o,=PF0*8X> @Z        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                         Increased / (Decreased) (in thousands) ~  ~  ~   % Americas ~ Z  ~ JU  ~    a@ % Europe ~    ~ z  ~ B  ~ * % Asia~ .0~ v ~    33333X@ % Total Revenue~ rS~ jj ~     yZ@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.a{o,O=PF0*8X> @          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017 Gross Profit                         Increased / (Decreased) (in thousands) ~  ~  ~   %  Gross profit ~   ~   ~ _   333333]@ %  Gross margin  33333sG@ %  @F@ %  333333@   ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hvj'=1%=PF0*8X> @z          l  o  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017%Selling and Marketing Expense                         Increased / (Decreased) (in thousands) ~  ~  ~   % Selling and marketing ~ f]  ~   ~ n   `]@ %  % of Revenue  ffffff3@ %  ffffff2@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h}qeY! =PF0*8X> @j          l  /  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017*"General and Administrative Expense                         Increased / (Decreased) (in thousands) ~  ~  ~   %" General and administrative ~ :5  ~ ~  ~    @@ %  % of Revenue  ffffff)@ %  333333@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`T =PF0*8X> @j          l  H  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017( Research and Development Expense                         Increased / (Decreased) (in thousands) ~  ~  ~   % Research and development ~   ~ ^z  ~ jx   X@ %  % of Revenue  @ %  @ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/* hznbV=PF0*8X> @j          l  k`  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Income from Operations                         Increased / (Decreased) (in thousands) ~  ~  ~   % Income from operations ~ z  ~ >  ~ >   ǡ@ %  % of Revenue  ffffff"@ %  ? %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`'=PF0*8X> @j          l  }  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and 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Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $      MTS SYSTEMS CORP 10-K 11/27/2017Results of Operations                           Estimated   (in thousands) ~   Business   Acquisition /  Currency ~ ~       Change  Restructuring 1   Translation Revenue ~ '  ~ B  ~ ^  ~ z  ~ zk"  Cost of sales~ ގ~ & ~    ~ ~  Gross profit~ ~  ~  F  ~ ~ vg  Gross marginA@ %   33333sC@ %   Operating expenses   Selling and marketing~ B~ 2 ~  b  ~ ~ z"General and administrative~ ;~  ~  r  ~ ~ # Research and development~ ~  ~  N'  ~ ~ fr Total operating expenses~ & ~ v? ~    ~ ~  Income from operations~ ~  ~  *  ~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>0ymaeU 3}c=PF0*8X> @6                   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                       Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Revenue ~ '  ~ zk"  ~ C   .@ % $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(T{oD=PF0*8X> @Z        l  P  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ } U} $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                       Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Americas ~ nX   ~ N   ~ "   ffffff@ % Europe ~    ~    ~    #@ % Asia~ T~ > ~  F  8@ % Total Revenue~ '~ zk" ~  C  .@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.M{oDc=PF0*8X> @          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ } U} $      MTS SYSTEMS CORP 10-K 11/27/2017 Gross Profit                       Increased / (Decreased) (in thousands) ~  ~ ~ ~   %  Gross profit ~   ~ vg   ~ >   @ %  Gross margin  A@ %  33333sC@ %  ffffff    ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hvj? UI==PF0*8X> @z          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per 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MTS SYSTEMS CORP 10-K 11/27/2017( Research and Development Expense                       Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Research and development ~   ~ fr  ~ ~   @ %  % of Revenue  333333@ %  @ %    $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hznbV+K?3 =PF0*8X> @j          l  S,  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations 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$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`5WK?=PF0*8X> @j          l  C  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit 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MTS SYSTEMS CORP 10-K 11/27/2017&Income Tax Provision (Benefit)                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   %& Income tax provision (benefit) ~  ^  ~ :  ~ ҇    L % Effective rate ~ J %  3333337@ %     ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/* h|pdX=PF0*8X> @z          l  %  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of 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 ~       fffffE %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl)=PF0*8X> @r         l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue 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development~ ~  ~    ~ ~  Total operating expenses~ V~ u ~    ~ Z~ b{Income from operations~ R{~ . ~    ~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>^0ymae9@3QowO=PF0*8X> @5                   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative 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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) 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COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                       Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Americas ~ &  ~   ~ &Q    % Europe ~   ~ V"  ~ d   @ % Asia~ ~ .l  ~  M  8@ % Total Revenue~ &D~ @ ~    ffffff%@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.M{oDc=PF0*8X> @          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 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DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ } U} $      MTS SYSTEMS CORP 10-K 11/27/2017 Gross Profit                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   %  Gross profit ~ `   ~    ~ P   @ %  Gross margin  @@ %  A@ %  333333   ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hvj'=1%=PF0*8X> @z          l  >  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing 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Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ } U} $      MTS SYSTEMS CORP 10-K 11/27/2017%Selling and Marketing Expense                       Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Selling and marketing ~ J@  ~   ~ RQ   333333 @ %  % of Revenue  333333+@ %  +@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h}qeY.9-!=PF0*8X> @j          l  '  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) 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$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`T)/#=PF0*8X> @j          l  ?  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit 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(4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017( Research and Development Expense                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Research and development ~   ~   ~    ٿ %  % of Revenue  333333 @ %  ffffff@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/* hznbV=PF0*8X> @j          l  "X  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp 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(1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Income from Operations                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Income from operations ~ R{  ~   ~    ffffff %  % of Revenue  @ %  333333"@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`'=PF0*8X> @j          l  y  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL 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Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating 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(2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Revenue ~ jj  ~ *  ~ r?   333333B@ % $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(T{o,=PF0*8X> @Z        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and 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Operations (5) Revenue (10)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } }  $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Revenue                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Americas ~ JU  ~ N  ~ o   33333R@ % Europe ~ z  ~   ~    0@ % Asia~ v~ K ~  fO  ~ b % Total Revenue~ jj~ * ~  r?  333333B@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.a{o,K=PF0*8X> @          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue 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(3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017 Gross Profit                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   %  Gross profit ~   ~ bW  ~ g   333333(@ %  Gross margin  @F@ %  K@ %  ffffff#   ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hvj'=1%=PF0*8X> @z          l  p  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross 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Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017%Selling and Marketing Expense                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Selling and marketing ~   ~ !  ~ zj   ffffffB@ %  % of Revenue  ffffff2@ %  L2@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h}qeY! =PF0*8X> @j          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and 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(1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017*"General and Administrative Expense                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   %" General and administrative ~ ~  ~   ~    fffffb@ %  % of Revenue  333333@ %  %@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`T =PF0*8X> @j          l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017( Research and Development Expense                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Research and development ~ ^z  ~ _  ~    ;@ %  % of Revenue  @ %  ffffff@ %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/* hznbV=PF0*8X> @j          l  h%  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit 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Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017Income from Operations                         Increased / (Decreased) (in thousands) ~  ~ ~ ~   % Income from operations ~ >  ~ .,  ~    33333W %  % of Revenue  ? % ~ N %      $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`+=PF0*8X> @j          l  B  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } +} $      MTS SYSTEMS CORP 10-K 11/27/2017Contractual Obligations                      (in thousands)  Total    Less than    1 - 3 years    3 - 5 years    More than        1 year           5 years Long-term debt 1 ~   ~ "  ~   ~   ~ E , $Interest payable on long-term debt 2 ~ F  ~ I  ~ rL  ~ ;  ~ 6 #Capital lease obligations 3~ &~ * ~  :  ~ *  -%Operating lease obligations 4~ ~ K ~  F8  ~ ~ R%Other long-term obligations 5~ ~  ~  v,  ~ !~ b'Total contractual obligations 6~ R~%~  ~    ~ N ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2U wk_ch =PF0*8X> @B(                   l  #ij  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } -} $ #     MTS SYSTEMS CORP 10-K 11/27/2017'Quarterly Financial Information                        First  Second  Third  Fourth  Full- %(in thousands, except per share data)  Quarter  Quarter  Quarter   Quarter 1  Year 2    (unaudited)   (unaudited)   (unaudited)   (unaudited)   Fiscal Year 2017               Revenue~ ) ~ B  ~     ~ BL ~ 0 Gross profit~ {~ " ~    ~ ~ s"Income before income taxes~ "~ R ~  |  ~ nA~ g Net income~ ~ ~p ~  ʥ  ~  W~ Earnings per share     Basic ףp= ?RQ?  Q?  (\?Q?Diluted ףp= ?RQ?  ?  (\?(\?   Fiscal Year 2016    Revenue~ V~ *^ ~     ~  ~ ' Gross profit~ ~4~ b ~    ~ ҝ~ "Income before income taxes~ ~ A ~    ~ .a~   Net income~ ~ . ~  o  ~ W~ Earnings per share     BasicHzG??  q= ףp?  (\?= ףp=@Diluted(\??  q= ףp?  (\?~ D^l{ocW[@pKh/^: !"$ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/ (=PF0*8X> @jM""!!                         l  J  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES 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CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } a} } 1      MTS SYSTEMS CORP 10-K 11/27/2017PART III    Name Age Position Jeffrey A. Graves~ / 'Director, President and Chief Executive   Officer William C. Becker~ ) !President, Materials Test SystemsSteven B. Harrison~ .&President, Vehicles and Structure TestSystems David T. Hore~ President, MTS Sensors Brian T. Ross~ 1)Senior Vice President and Chief FinancialOfficer$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4znJ6d=PF0*8X> @ l  rvq  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } I; r     MTS SYSTEMS CORP 10-K 11/27/2017PART IV      $@  * 4 ,MTS Systems Corporation 2011 Stock Incentive    5 -Plan, conformed copy including all amendments    . &through February 9, 2016, incorporated    0 (by reference to Annex B of the Company's.&Definitive Proxy Statement on Schedule$14A filed December 30, 2015.%@ *80Form of Notice of Grant and Terms and Conditions6.of Employee Options under 2011 Stock Incentive2*Plan, incorporated by reference to Exhibit4,99.1 of the Company's Registration Statement+#on Form S-8 filed February 9, 2011.333333%@ *80Form of Notice of Grant and Terms and Conditions0(of Employee Restricted Stock Units under/'2011 Stock Incentive Plan, incorporated5-by reference to Exhibit 99.2 of the Company's0(Registration Statement on Form S-8 filedFebruary 9, 2011.ffffff%@ *80Form of Notice of Grant and Terms and Conditions/'of Employee Restricted Stock under 2011D l{o3[3,\YR !"#$%&'()*+,-./0123456789:;<=>?    - %Stock Incentive Plan, incorporated by!!!!2!*reference to Exhibit 99.3 of the Company's""""0"(Registration Statement on Form S-8 filed#####February 9, 2011.$$$$$%%@% %*%8%0Form of Notice of Grant and Terms and Conditions&&&&/&'of Restricted Stock for Directors under''''/''2011 Stock Incentive Plan, incorporated((((5(-by reference to Exhibit 99.4 of the Company's))))0)(Registration Statement on Form S-8 filed*****February 9, 2011.++++,%@, ,*,3,+Form of Notice of Grant of Restricted Stock----1-)and Restricted Stock Agreement - Director....9.1under the 2011 Stock Incentive Plan, incorporated////5/-by reference to Exhibit 10.1 of the Company's000070/Form 10-Q for the fiscal quarter ended December11111 28, 2013.222223333333$@3 3*333+Form of Notice of Grant of Restricted Stock4444.4&Units and Restricted Stock Agreement -555525*Non-Employee Director under the 2011 Stock666616)Incentive Plan, incorporated by reference777727*to Exhibit 10.2 of the Company's Form 10-Q888818)for the fiscal quarter ended December 28,9999~ 9v:::::;Q8$@; ;*;/;'Uniform Terms and Conditions Applicable<<<<1<)to Non-Employee Director Restricted Stock====2=*Unit Grants under the 2011 Stock Incentive>>>>2>*Plan, incorporated by reference to Exhibit????6?.10.3 of the Company's Form 10-Q for the fiscalD1l9LvF[ p4d3T@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@@@@(@ quarter ended December 28, 2013.AAAAAB= ףp=$@B B*B3B+Form of Notice of Grant of Restricted StockCCCC1C)Units and Restricted Stock Unit AgreementDDDD1D)- Employee under the 2011 Stock IncentiveEEEE2E*Plan, incorporated by reference to ExhibitFFFF6F.10.4 of the Company's Form 10-Q for the fiscalGGGG(G quarter ended December 28, 2013.HHHHHI(\B$@I I*I/I'Uniform Terms and Conditions ApplicableJJJJ0J(to Employee Restricted Stock Unit GrantsKKKK9K1under the 2011 Stock Incentive Plan, incorporatedLLLL5L-by reference to Exhibit 10.5 of the Company'sMMMM7M/Form 10-Q for the fiscal quarter ended DecemberNNNNN 28, 2013.OOOOOPHzG$@P P*P0P(Form of Notice of Grant of Non-QualifiedQQQQ,Q$Stock Options and Option Agreement -RRRR/R'Employee under the 2011 Stock IncentiveSSSS2S*Plan, incorporated by reference to ExhibitTTTT6T.10.6 of the Company's Form 10-Q for the fiscalUUUU(U quarter ended December 28, 2013.VVVVVWL$@W W*W/W'Uniform Terms and Conditions ApplicableXXXX0X(to Employee Option Grants under the 2011YYYY-Y%Stock Incentive Plan, incorporated byZZZZ2Z*reference to Exhibit 10.7 of the Company's[[[[7[/Form 10-Q for the fiscal quarter ended December\\\\\ 28, 2013.]]]]]^RQ$@^ ^*^/^'Uniform Terms and Conditions Applicable____0_(to Employee Performance Restricted StockD-lh0`^$t8m :8s ]!`abcdefghijklmnopq````6`.Unit Agreements under the 2011 Stock Incentiveaaaa2a*Plan, incorporated by reference to Exhibitbbbb0b(10.16 of the Company's Form 10-K for thecccc*c"fiscal year ended October 3, 2015.ddddeףp= W$@e e*e6e.Form of Notice of Grant Performance Restrictedffff.f&Stock Units and Performance Restrictedgggg1g)Stock Unit Agreement - Employee under thehhhh/h'2011 Stock Incentive Plan, incorporatediiii6i.by reference to Exhibit 10.17 of the Company'sjjjj3j+Form 10-K for the fiscal year ended Octoberkkkkk3, 2015.llllmn$o____________________________1p)Created by Morningstar Document Research.0q(http://documentresearch.morningstar.com/(T0n>k9^RF=PF0*8X> @qqppoo l  c   dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } $} $ } 8 c     MTS SYSTEMS CORP 10-K 11/27/2017PART IV      \(\$@  * 4 ,MTS Systems Corporation 2017 Stock Incentive    0 (Plan, incorporated by reference to Annex    5 -A of the Company's Definitive Proxy Statement    - %on Schedule 14A filed April 25, 2017.zGa$@ */'Form of Restricted Stock Unit Agreement3+- Employee under 2017 Stock Incentive Plan,1)incorporated by reference to Exhibit 99.2/'of the Company's Registration Statement'on Form S-8 filed June 7, 2017.ffffff$@ *4,Form of Non-Qualified Stock Option Agreement3+- Employee under 2017 Stock Incentive Plan,1)incorporated by reference to Exhibit 99.3/'of the Company's Registration Statement'on Form S-8 filed June 7, 2017.Qk$@ *6.Form of Performance Restricted Stock Agreement3+- Employee under 2017 Stock Incentive Plan,1)incorporated by reference to Exhibit 99.4/'of the Company's Registration Statement'on Form S-8 filed June 7, 2017.Dz l{o3`f0r6`=) !"#$%&'()*+,-./0123456789:;<=>?    !q= ףp$@! !*!/!'Form of Restricted Stock Unit Agreement""""0"(- Non-employee Director under 2017 Stock####1#)Incentive Plan, incorporated by reference$$$$5$-to Exhibit 99.5 of the Company's Registration%%%%1%)Statement on Form S-8 filed June 7, 2017.&&&&'(\u$@' '*'/''Letter Agreement, dated as of March 31,((((4(,2012, by and between the Company and Jeffrey))))/)'A. Graves, incorporated by reference to****4*,Exhibit 10.1 of the Company's Current Report++++(+ on Form 8-K filed April 9, 2012.,,,,,-{Gz$@- -*-2-*Employment Agreement, dated as of April 1,....0.(2016, by and between PCB Group, Inc. and////0/(David T. Hore, incorporated by reference000000(to Exhibit 10.2 to the Company's Current1111.1&Report on Form 8-K filed July 7, 2016.222223$@3 3*303(First Amendment to Employment Agreement,444444,dated as of November 8, 2016, by and between555575/PCB Group, Inc. and David T. Hore, incorporated666666.by reference to Exhibit 10.22 of the Company's777737+Form 10-K for the fiscal year ended October888881, 2016.9999:Q$@: :*:0:(Letter Agreement, dated August 24, 2016,;;;;1;)by and between the Company and William C.<<<<4<,Becker, incorporated by reference to Exhibit====/='10.1 of the Company's Current Report on>>>>'>Form 8-K filed January 5, 2017.????D lf45jj5o3`$Ex@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@ ףp=$@@ @*@2@*Letter Agreement, dated December 30, 2016,AAAA0A(by and between the Company and Steven B.BBBB.B&Harrison, incorporated by reference toCCCC4C,Exhibit 10.2 of the Company's Current ReportDDDD*D"on Form 8-K filed January 5, 2017.EEEEF(\$@F F*F0F(Mutual Separation and Release Agreement,GGGG0G(dated April 18, 2017, by and between theHHHH5H-Company and Catherine L. Powell, incorporatedIIII5I-by reference to Exhibit 10.1 to the Company'sJJJJ2J*Current Report on Form 8-K filed April 18,KKKK~ KLLLLMGz$@M M*M1M)Form of Indemnification Agreement betweenNNNN1N)the Company and each of its directors andOOOO5O-executive officers, incorporated by referencePPPP0P(to Exhibit 10.1 of the Company's CurrentQQQQ3Q+Report on Form 8-K filed September 1, 2006.RRRRS$@S S*S0S(Amended and Restated Executive SeveranceTTTT2T*Plan, incorporated by reference to ExhibitUUUU0U(10.26 of the Company's Form 10-K for theVVVV*V"fiscal year ended October 1, 2016.WWWWXQ$@X X*X-X%Amended and Restated Executive ChangeYYYY/Y'in Control Severance Plan, incorporatedZZZZ6Z.by reference to Exhibit 10.27 of the Company's[[[[3[+Form 10-K for the fiscal year ended October\\\\\1, 2016.]]]]^_D> l/el6b(]-\j5Z`ab$`____________________________1a)Created by Morningstar Document Research.0b(http://documentresearch.morningstar.com/ (=PF0*8X> @bbaa`` l  .49  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } I } $ } U} $ } : .     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Exchange Act of 1934,''''0'(as amended, and otherwise is not subject((((*("to liability under these sections.)*$+____________________________1,)Created by Morningstar Document Research.0-(http://documentresearch.morningstar.com/ C?y @~rf>=PF0*8X> @--,,++ l  2%SX  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative 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Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } y } 0.} $ }  2     MTS SYSTEMS CORP 10-K 11/27/20172*Index to Consolidated Financial Statements        Page    / 'Report of Independent Registered Public  F- 2 Accounting Firm3+Consolidated Balance Sheets as of September F- 3$30, 2017 and October 1, 2016-%Consolidated Statements of Income for F- 42*the Fiscal Years Ended September 30, 2017,+#October 1, 2016 and 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Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated Financial!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } U5} $ @                                 MTS SYSTEMS CORP 10-K 11/27/2017#Consolidated Balance Sheets            September 30, 2017   October 1, 2016  Assets       Current assets      ! Cash and cash equivalents ~   ~ , -%Accounts receivable, net of allowance~ j~ %3+for doubtful accounts of $5,371 and $3,923, respectively$Unbilled accounts receivable~ ʱ~ JInventories, net~ ~ Z1)Prepaid expenses and other current assets~ 6~ Total current assets~ ~ &#Property and equipment, net~ j~ &Goodwill~ ~ Intangible assets, net~ ~ HOther long-term assets~ R@~ ODeferred income taxes~ 7~ T Total assets~ H~ ҂H,$Liabilities and Shareholders' EquityCurrent liabilities-%Current maturities of long-term debt,~ b~  netD lsg[z M $Ew 8 ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ?  Accounts payable ~ n  ~  )!!Accrued payroll and related costs!~ !j!!~ !!'"Advance payments from customers"~ """~ "bp"#Accrued warranty costs#~ # ^##~ #ZY#$Accrued income taxes$~ $E$$~ $5$%Accrued dividends%~ %zR%%~ %:M%!&Other accrued liabilities&~ &&&&~ &z&!'Total current liabilities'~ 'v''~ '0 '0((Long-term debt, less current maturities,(~ (‹((~ (f( )net*Deferred income taxes*~ ***~ *@*(+ Non-current accrued income taxes+~ +~[++~ +ba+/,'Defined benefit pension plan obligation,~ ,2,,~ ,,#-Other long-term liabilities-~ -V--~ -*X-.Total liabilities.~ .Nq...~ ././////0Shareholders' Equity00000041,Common stock, $0.25 par value; 64,000 shares1~ 1bE11~ 1A132+authorized: 17,760 and 16,660 shares issued03(and outstanding as of September 30, 2017)4!and October 1, 2016, respectively"5Additional paid-in capital5~ 5 55~ 5s 56Retained earnings6~ 6*66~ 666.7&Accumulated other comprehensive income7~ 7^77~ 7]78(loss)"9Total shareholders' equity9~ 9+99~ 9292:*Total liabilities and shareholders' equity:~ :H::~ :҂H:;<$=____________________________1>)Created by Morningstar Document Research.0?(http://documentresearch.morningstar.com/D l:exU!}U=PF0*8X> @:G??>>==::::99997777666655551111....----,,,,++++****((((''''&&&&%%%%$$$$####""""!!!!       l  /`  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 8}  $ /                                 MTS SYSTEMS CORP 10-K 11/27/2017)!Consolidated Statements of Income             ! For the fiscal year ended  September 30, 2017   October 1, 2016   October 3, 2015  Revenue          Product ~ >4*  ~ R"  ~   Service ~   ~ [  ~   Total revenue~ 0~ ' ~  zk"  Cost of sales   Product~ 6~ fM ~    Service~ ~ zA ~   Total cost of sales~ ~ ގ ~    Gross profit~ s~  ~  vg  Operating expenses   Selling and marketing~ Ÿ~ B ~  z "General and administrative~ W~ ; ~  #  Research and development~ "~  ~  fr  Total operating expenses~ j~ &  ~    Income from operations~ X~  ~   Interest expense, net~ n~ ^{ ~   #Other income (expense), net~ r~  ~   "Income before income taxes~ g~   ~   &Income tax provision (benefit)~ ~  ^ ~  :  Net income~ ~  ~  Z   DlymaUyo_U:Y2e ! " # $ % & ' ( ) * + , - .  Earnings per share         ! Basic!!!!! ! " Earnings per share""Q?"""Q?"" " = ףp=@" 7#/ Weighted average common shares outstanding#~ #)##~ #n## ~ # "# $$$$$$ $ % Diluted%%%%% % & Earnings per share&&(\?&&&333333?&& ~ & & 7'/ Weighted average common shares outstanding'~ '+''~ ''' ~ ' ' (((((( ( $)Dividends declared per share))333333?)))333333?)) ) 333333?) *+$,____________________________1-)Created by Morningstar Document Research.0.(http://documentresearch.morningstar.com/"vzy~=PF0*8X> @BH.. -- ,, )))))) '''''' &&&&&& ###### """"""                      l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 0}  $                                MTS SYSTEMS CORP 10-K 11/27/20177/Consolidated Statements of Comprehensive Income             ! For the fiscal year ended  September 30, 2017   October 1, 2016   October 3, 2015   Net income ~   ~   ~ Z . &Other comprehensive income (loss), net          of tax0(Foreign currency translation gain (loss)~ &3~  ~  P  adjustmentsDerivative instruments   "Unrealized net gain (loss)~  ~  ~  " 0(Net (gain) loss reclassified to earnings~ ~ Z ~  : $Defined benefit pension plan   "Unrealized net gain (loss)~ @~ . ~  Z 0(Net (gain) loss reclassified to earnings~  ~ b ~  z *"Currency exchange rate gain (loss)~ ^~  ~  J  )!Other comprehensive income (loss)~ r~  ~  M Comprehensive income~ b!~ b ~  6 $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@{ Dwk_SGb g)WznF=PF0*8X> @ !               l  4  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 1} $ }  } $ 4     MTS SYSTEMS CORP 10-K 11/27/20177/Consolidated Statements of Shareholders' Equity                            Common Stock   Additional     Accumulated  Total          Paid-In      Other   Shareholders'          Capital       Comprehensive  Equity   Shares  Amount      Retained   Income (Loss) Issued     Earnings#Balance, September 27, 2014~ 2~ N;~  _  ~  r~ [~ >"Total comprehensive income - -  -  ~  Z~ M~ 6!Exercise of stock options~ r~ ^~  =    - -~ ^= Stock-based compensation~ ~ :~  Nt    - -~ t,$Tax benefit from equity compensation - -~  z     - -~ z 1)Issuance for employee stock purchase plan~ B~ ~  R    - -~ b*"Common stock purchased and retired~ ~ f~  :  ~  z" -~ 9"Dividends, $1.20 per share - -  -  ~  > -~ > Balance, October 3, 2015~ R~ V:~  B  ~  ~~ ި~ z"Total comprehensive income - -  -  ~  ~ ~ b1)Issuance of common stock, net of issuance~ ~ j~      - -~  costs.&Issuance of tangible equity units, net - -~  ~(    - -~ ~(of issuance costs Purchase of capped calls - -~      - -~ !Exercise of stock options~ ~ F~  z+    - -~ + Stock-based compensation~ ~ 2~  o    - -~ oD-lwk_SG'}'d` !"#$%&'()*+,-./0123. &Tax shortfall from equity compensation  -   -  ~ R   -   -  ~ R 1!)Issuance for employee stock purchase plan!~ !b!!~ !!!~ ! J! !  ! -!! !-!!~ !b!*""Common stock purchased and retired"~ "2""~ """~ " vZ" " ~ "  "" "-""~ "J""#Dividends, $1.20 per share# #-## #-## # -# # ~ # ## #-##~ ## $Balance, October 1, 2016$~ $R$$~ $A$$~ $ s $ $ ~ $ 6$$~ $]$$~ $2$"%Total comprehensive income% %-%% %-%% % -% % ~ % %%~ %r%%~ %b!%+&#Conversion of tangible equity units&~ &&&~ &&&~ & V& &  & -&& &-&& &-&"'Settlement of capped calls'~ '''~ '''~ ' ' '  ' -'' '-'' '-'!(Exercise of stock options(~ (((~ (r((~ ( F( (  ( -(( (-((~ (>G( )Stock-based compensation)~ )))~ )F))~ ) W) )  ) -)) )-))~ )W).*&Tax shortfall from equity compensation* *-** *-**~ * * *  * -** *-**~ **1+)Issuance for employee stock purchase plan+~ +f++~ +++~ + + +  + -++ +-++~ ++*,"Common stock purchased and retired,~ ,~,,~ ,,,~ , >, ,  , -,, ,-,,~ ,,"-Dividends, $1.20 per share- ---- ---- - -- - ~ - -- ----~ --#.Balance, September 30, 2017.~ ...~ .bE..~ .  . . ~ . *..~ .^..~ .+./0$1____________________________12)Created by Morningstar Document Research.03(http://documentresearch.morningstar.com/,|{dTNC7+=PF0*8X> @J332211.... .. ....---- -- ----,,,, ,, ,,,,++++ ++ ++++**** ** ****)))) )) ))))(((( (( (((('''' '' ''''&&&& && &&&&%%%% %% %%%%$$$$ $$ $$$$#### ## ####"""" "" """"!!!! !! !!!!                                               l  b3 D U V  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } I;}  $ b                                 MTS SYSTEMS CORP 10-K 11/27/2017-%Consolidated Statements of Cash Flows             ! For the fiscal year ended  September 30, 2017  October 1, 2016  October 3, 2015, $Cash Flows from Operating Activities           Net income ~   ~   ~ Z . &Adjustments to reconcile net income to         0(net cash provided by (used in) operating activities Stock-based compensation~ W~ p ~  r 91Excess tax benefits from stock-based compensation~ ~  ~   3+Fair value adjustment to acquired inventory~ |~ {   - )!Net periodic pension benefit cost~ ~  ~  j %Depreciation and amortization~ +~ 6x ~  I +#Amortization of debt issuance costs~ ^<~ z ~   #Loss on debt extinguishment~ ~    - Deferred income taxes~ fq~  ~  . *"Bad debt provision (recovery), net~ *~  ~   3+Changes in operating assets and liabilities   1)Accounts receivable and unbilled accounts~ w~ V ~  3  receivableInventories, net~ ~ 4 ~  ޿ Prepaid expenses~ ~   ~   Accounts payable~ ^~ >X ~  i )!Accrued payroll and related costs~ J~  ~   Dlui]Q|V" vDy/ ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ? 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Dlc5y<9#N fB,T@ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z [ \ ] ^ _ ,@$Payments under short-term borrowings@ @-@@~ @z@@ ~ @ @ 9A1Excess tax benefits from stock-based compensationA~ ABAA~ AAA ~ A  A BCash dividendsB~ BFBB~ BR&BB ~ B NB /C'Proceeds from exercise of stock optionsC~ C.WCC~ C<CC ~ C KC (D and employee stock purchase plan.E&Payments to purchase and retire commonE~ EEE~ EJEE ~ E 9E  Fstock0G(Net Cash Provided by (Used in) FinancingG~ G#GG~ Gs"GG ~ G >G H ActivitiesIIIIIIII I I /J'Effect of Exchange Rate Changes on CashJ~ JJJ~ J JJ ~ J BJ Kand Cash Equivalents!LCash and Cash EquivalentsLLLLLLL L L +M#Increase (decrease) during the yearM~ MFvMM~ MMM ~ M .yM $NBalance, beginning of periodN~ N,NN~ N(NN ~ N N OBalance, End of PeriodO~ OOO~ O,OO ~ O (O  PSupplemental DisclosuresPPPPPPP P P %QCash paid during the year forQQQQQQQ Q Q RInterestR~ RRR~ R&RR ~ R  R S Income taxesS~ SZSS~ S*SS ~ S ^S 3T+Non-cash investing and financing activitiesTTTTT T ,U$Deferred endowment consideration notU U-UU~ UUU  U -U Vyet paid.W&Net working capital adjustment not yetW W-WW~ WWW  W -W Xreceived-Y%Property and equipment acquired underY~ Y*YY Y-YY  Y -Y Z capital lease'[Dividends declared not yet paid[~ [zR[[~ [:M[[  [ -[ 1\)Debt issuance costs not yet paid recorded\ \-\\~ \\\  \ -\ 9]1in accounts payable and other accrued liabilities^$_____________________________Dl_$SjsE ;'m,` a 1`)Created by Morningstar Document Research.0a(http://documentresearch.morningstar.com/=PF0*8X> @aa `` __ \\\\\\ [[[[[[ YYYYYY WWWWWW UUUUUU SSSSSS RRRRRR OOOOOO NNNNNN MMMMMM JJJJJJ GGGGGG EEEEEE CCCCCC BBBBBB AAAAAA @@@@@@ ?????? ====== ;;;;;; 999999 777777 555555 444444 111111 ////// ...... ------ ****** (((((( '''''' &&&&&& ###### """""" !!!!!!                     l  r  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR 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Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of CashProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE 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Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 0.} $                       MTS SYSTEMS CORP 10-K 11/27/2017 Inventories          (in thousands) ~  ~ (  Components, assemblies and parts ~ >O  ~ >Q . &Customer projects in various stages of ~ F  ~    completionFinished goods~ B~ "Total inventories, net~ ~ Z$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.|wk9?=PF0*8X> @j        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing 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(4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation 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Equipment    Asset Type  Useful Life" Buildings and improvements 10 to 40 years Machinery and equipment  3 to 10 years $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(rTxl`H_=PF0*8X> @ l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and 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Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } -} $                         MTS SYSTEMS CORP 10-K 11/27/2017Warranty Obligations          (in thousands) ~  ~ (  Beginning accrued warranty costs ~ ZY  ~ ^I  Warranty claims ~   ~   Warranty provisions ~ ZC  ~ fR -%Adjustments to preexisting warranties~ ~ n %Acquired warranty obligations -~  Currency translation~ V~ %Ending accrued warranty costs~  ^~ ZY$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2znb0^mtL=PF0*8X> @         l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit 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Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 2}  $                              MTS SYSTEMS CORP 10-K 11/27/2017!Earnings Per Common Share             - %(in thousands, except per share data) ~  ~  ~ ~  Net income ~   ~   ~ Z        2 *Weighted average common shares outstanding ~ )  ~ n  ~ " %Effect of dilutive securities   Stock-based compensation~ ~  ~  z Tangible equity units -~    - /'Weighted average dilutive common shares~ +~  ~    outstanding  Earnings per share    BasicQ?Q?  = ףp=@ Diluted(\?333333? ~   $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<i ui]BfM&jpdX0=PF0*8X> @              l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross 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Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common Share GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } <(} $                         MTS SYSTEMS CORP 10-K 11/27/2017Property and Equipment          (in thousands) ~  ~  Land and improvements ~ ,  ~ , " Buildings and improvements ~ Ү  ~ Z  Machinery and equipment ~ 6   ~ z  ( Assets held under capital leases~ * -$Total property and equipment~ ~ [&Less: Accumulated depreciation~ ~ B)!Total property and equipment, net~ j~ &$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2xl`9Xm~rf>=PF0*8X> @         l  "  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of 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$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8c zn`?|HNB6=PF0*8X> @                l  ' n  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue 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                     October 1, 2016 (in thousands)  Carrying Value   Fair Value  Level 1  Level 2  Level 31 )Debt component of tangible equity units 3 ~ f  ~ ¶   $-  ~ ¶   $-  Tranche B term loan 4 ~   ~ h   -  ~ h   -  Total debt~ ~    $-  ~  $-$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,d|sg[_8y=PF0*8X> @               l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net 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from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } m)} $                            MTS SYSTEMS CORP 10-K 11/27/2017<4NOTE 4 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES            September 30, 2017 (in thousands)  Prepaid Expenses   Other Accrued    and Other   Liabilities   Current Assets$Designated hedge derivativesCash flow derivatives~ &~ Interest rate swaps~ 6 -*"Total designated hedge derivatives~ 7~ &Undesignated hedge derivatives!Balance sheet derivatives~ 6 -Total hedge derivatives~ 9~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8 rfZNB9Gpe=PF0*8X> @       l  0  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } $} $                          MTS SYSTEMS CORP 10-K 11/27/2017<4NOTE 4 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES            October 1, 2016 (in thousands)  Prepaid Expenses   Other Accrued    and Other   Liabilities   Current Assets$Designated hedge derivativesCash flow derivatives~ V~  &Undesignated hedge derivatives!Balance sheet derivatives -~ :Total hedge derivatives~ V~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4rfZNB @z       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } a} $      MTS SYSTEMS CORP 10-K 11/27/2017<4NOTE 4 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES                          (in thousands)  Gross  Gross  Net   Derivatives  Cash  Net    Recognized  Offset  Amount   Subject to   Collateral  Amount 1   Amount  Amount   Presented  Offset  Received September 30, 2017            Assets~ 7 $- ~  7  ~  $-~ 4 Liabilities~  - ~    ~  -~ V   October 1, 2016    Assets~ V $- ~  V  ~  $-~   Liabilities~   - ~     ~  -~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6 rfZNBM*4;}=PF0*8X> @b,                   l  %  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)Interest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } U5} $                         MTS SYSTEMS CORP 10-K 11/27/2017( Cash Flow Hedging Currency Risks          (in thousands) ~  ~ / 'Beginning unrealized net gain (loss) in ~   ~    AOCI1 )Net (gain) loss reclassified into revenue ~   ~ : (effective portion)4,Net gain (loss) recognized in OCI (effective~ ~  portion)1)Ending unrealized net gain (loss) in AOCI~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2!znbV mTH<=PF0*8X> @j        l  ?  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } U5} $                         MTS SYSTEMS CORP 10-K 11/27/2017Interest Rate Swaps          (in thousands) ~  ~ / 'Beginning unrealized net gain (loss) in  $-   $-  AOCI2 *Net (gain) loss reclassified into interest ~     - #expense (effective portion)4,Net gain (loss) recognized in OCI (effective~ - -portion)1)Ending unrealized net gain (loss) in AOCI~ 6 $-$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2{oc*rZNB=PF0*8X> @j        l  ;  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 7} $                                 MTS SYSTEMS CORP 10-K 11/27/2017NOTE 5 FINANCING          (in thousands) ~  ~  Long-term debt    1 )Tranche B term loan, 1.00% amortizing per ~   ~  # year, maturing July 5, 20235-Tangible equity units, 8.75% coupon, maturing~ ~ fJuly 1, 2019 1!Capital lease obligations~ & -Total long-term debt~ ~ 1)Less: Unamortized underwriting discounts,~ <~ &commissions and other expenses2*Less: Current maturities of tranche B term~ ~ "loan debt 2, 3.&Less: Current maturities of TEU debt 2~ q~ z1)Less: Current maturities of capital lease~  - obligations 26.Total long-term debt, less current maturities,~ ‹~ f net$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/B X~rfb5?z[L@=PF0*8X> @     l  R  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCING!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $      MTS SYSTEMS CORP 10-K 11/27/2017Interest Rate Swaps     (in thousands) Notional Amount  October 3, 2017~ b  October 3, 2018~    October 3, 2019~   October 3, 2020~ " April 3, 2021 -$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.a{oc3S=PF0*8X> @J      l  /i  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $      MTS SYSTEMS CORP 10-K 11/27/2017+#Future Maturities of Long-term Debt      Fiscal Year Future Maturities 4  (in thousands)~ ~ J ~ ~ B ~ ~ P~ ~ P~ ~ K Thereafter~ E$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2wk_S#wO'=PF0*8X> @Z      l  ؅  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL 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Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 7}  $                               MTS SYSTEMS CORP 10-K 11/27/2017( Stock-based Compensation Expense              (in thousands) ~  ~  ~ ~0 (Stock-based compensation expense by type          of award Employee stock options ~   ~ &  ~ ) $Employee stock purchase plan~ ~  ~   -%Restricted stock and restricted stock~ f:~ A ~  F  units( Amounts capitalized as inventory~ r~ : ~   0(Amounts recognized in income for amounts~ 6~ % ~  Z +#previously capitalized as inventory/'Total stock-based compensation included~ W~ p ~  r !in income from operations6.Income tax benefit on stock-based compensation~ n~ . ~   0(Net compensation expense included in net~ 9~ K ~  J income$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/> 0znbVR pxI-=PF0*8X> @              l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research 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2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $ } U} $} $ } U} $} $ } U} $                      MTS SYSTEMS CORP 10-K 11/27/2017 Stock Options            ~  ~  ~ ~ Expected life (in years) ~    ffffff@    @  Risk-free interest rate  ? %  ? %  ? % Expected volatility  333333=@ %  33333:@ %  ffffff;@ %Dividend yield@ %~   %?  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|uiU=PF0*8X> @2      l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION 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(2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock Options!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 1} $ } U} $ } U} $ } U} $      MTS SYSTEMS CORP 10-K 11/27/2017 Stock Options                        ~  ~  ~ ~- %(in thousands, except per share data)  Shares  WAEP 1  Shares  WAEP 1  Shares  WAEP 10 (Options outstanding at beginning of year ~ B    Q+N@  ~     (\M@  ~     \(J@  Granted ~    ,G@  ~    )\N@  ~    RP@  Exercised~ Bףp= WD@~     ̌D@~ q= ףpE@Forfeited or expired~ Q^N@~     QN@~ RO@*"Options outstanding at end of year~  GzL@~  B    Q+N@~  (\M@1)Options eligible for exercise at year end~ &zG!P@~  .   = ףpL@~ HzGH@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2 uia"c=PF0*8X> @                 l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net 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Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } -} $ } U} $ } U} $ } $} $      MTS SYSTEMS CORP 10-K 11/27/2017WORestricted Stock, Restricted Stock Units and Performance Restricted Stock Units                        ~  ~  ~ ~- %(in thousands, except per share data)  Shares  WAGDFV 3  Shares  WAGDFV 3  Shares  WAGDFV 3(  Outstanding at beginning of year ~    = ףp}M@  ~    zG1P@  ~    zGAN@  Granted ~ v   fffffF@  ~    QK@  ~ *   Q{P@ Vested and released~ )\M@~  F   \(,P@~ Fףp= L@ Forfeited~  ףp=J@~     33333O@~ = ףpP@"Outstanding at end of year~ ~H@~     = ףp}M@~ zG1P@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0 WK?3'yQ=PF0*8X> @                l  !   dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer 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AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 1} $ !                                 MTS SYSTEMS CORP 10-K 11/27/2017$Defined Benefit Pension Plan          (in thousands) ~  ~ $ Change in benefit obligation      / 'Projected benefit obligation, beginning ~    ~ "  of year Service cost~ J~ . Interest cost~ ~  Actuarial (gain) loss~ ~ _Currency translation~ *~ v Benefits paid~ ~ 1)Projected benefit obligation, end of year~ b~  Change in plan assets/'Fair value of plan assets, beginning of~ 7~ >% year$Actual return on plan assets~ ~ ~Employer contributions~ ^ ~  Currency translation~ ~  Benefits paid~ ~ .&Fair value of plan assets, end of year~ e~ 7$____________________________1)Created by Morningstar Document Research.D l~rfZ0:h. @      l  0  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense 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year ~ :m  ~  * "Actuarial net loss in AOCI, pretax ~   ~  Net amount recognized~ ~ /'Included in Consolidated Balance Sheets)!Accrued payroll and related costs~ j~ r/'Defined benefit pension plan obligation~ y~ B)Deferred income taxes~ +~ 6IAOCI, net of tax~ d~ Net amount recognized~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8~rfZ?Sks1%=PF0*8X> @       l  _H  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense 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%8 0Expected rate of increase in future compensation ~  % ~  %levels$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h~rfZWE3'=PF0*8X> @*   l  d_  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } !} $ }  } $} $ }  } $      MTS SYSTEMS CORP 10-K 11/27/2017$Defined Benefit Pension Plan         ! Percentage of Plan Assets  ~  ~ ! Fixed income securities 1  Q@ %  R@ %# Cash and cash equivalents 2  <@ %  8@ % Total~  %~  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|~rfZ2&=PF0*8X> @2    l  v  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $      MTS SYSTEMS CORP 10-K 11/27/2017$Defined Benefit Pension Plan                    September 30, 2017 (in thousands)  Level 1  Level 2  Level 3  Total  Mutual fund 1  $-  ~ e   $-  ~ e  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(T~rfZX=PF0*8X> @b         l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and 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GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $      MTS SYSTEMS CORP 10-K 11/27/2017$Defined Benefit Pension Plan                    October 1, 2016 (in thousands)  Level 1  Level 2  Level 3  Total  Mutual fund 1  $-  ~ 7   $-  ~ 7  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(T~rfZ[ =PF0*8X> @b         l  b  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL 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(4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash 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Consolid!Computation of Ratio of EarningAs of September 30 2017U } $}  $                        MTS SYSTEMS CORP 10-K 11/27/2017$Defined Benefit Pension Plan              (in thousands) ~  ~  ~ ~  Service cost ~ J  ~ .  ~ r    Interest cost ~   ~    ~   & Expected return on plan assets ~   ~   ~ > %Net amortization and deferral~ ~ "  ~   $Special termination benefits - -   - !Net periodic benefit cost~ ~  ~  j $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0~rfZVA s=PF0*8X> @              l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing 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@z           l  :  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of 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Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 2} $ } $} $} $ } $} $} $ } $} $                            MTS SYSTEMS CORP 10-K 11/27/2017NOTE 8 INCOME TAXES           (in thousands) ~  ~  ~ ~. &U.S. federal statutory income tax rate ~  % ~  % ~  %& Impact from foreign operations ~   ~   ~  2 *State income taxes, net of federal benefit ~    -  ~  R&D tax credits~ ~ ~  0(Domestic production activities deduction~ ~ ~  Foreign tax credits - - - Acquisition costs~ ~  - .&Nondeductible stock option expense and~  ~ ~  other permanent items!Effective income tax rate~  %~ J %~ ^  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8 {oc@ fJ=PF0*8X> @2      l  $)) ^*  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development 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babenefits$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8{oc-yP_=PF0*8X> @       l  *]  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross 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      l  ?v  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of 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""Total capital expenditures"~ """~ "E"" ~ " 6 " ###### # %$Depreciation and Amortization$$$$$ $  %Test%~ % %%~ % %% ~ % % &Sensors&~ &"&&~ &:j&& ~ & 2+& +'#Total depreciation and amortization'~ '+''~ '6x'' ~ ' I' ()$*____________________________1+)Created by Morningstar Document Research.0,(http://documentresearch.morningstar.com/~a =PF0*8X> @<,, ++ ** '''''' &&&&&& %%%%%% """""" !!!!!!                   l  +  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision 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(5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } <(}  $                                MTS SYSTEMS CORP 10-K 11/27/2017,$NOTE 11 BUSINESS SEGMENT INFORMATION              (in thousands) ~  ~  ~ ~ Revenue       U.S. ~ ^  ~ Nq   ~ ;   Europe ~    ~    ~    China~ r ~ "K  ~  >  Asia, excluding China~ Ҵ~ b  ~    Americas, excluding U.S.~ ~ " ~  n[  Total revenue~ 0~ ' ~  zk"   #Property and Equipment, Net   U.S.~ ~  ~  ž Europe~ ~  ~  >  China~ V~ W ~  a Asia, excluding China~ ~  ~  N )!Total property and equipment, net~ j~ & ~   $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@ Dvj^RNqjAbqj8, =PF0*8X> @:'                  l  I  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 0.}  $                                MTS SYSTEMS CORP 10-K 11/27/2017&Fiscal Year 2014 Restructuring             (in thousands) Test  Sensors  Total Fiscal year 2017       Cost of sales~ &  ~    ~ 1  Selling and marketing~   ~ .  ~  "General and administrative~ ~ ~     Research and development - -  - .&Total restructuring expense for fiscal~ -~ ~  ?  year 2017 Fiscal year 2016  Cost of sales~ ~  ~   Selling and marketing~ ~ n~  r "General and administrative~ z~ F~     Research and development~  -~   .&Total restructuring expense for fiscal~ > ~ ~  !  year 2016$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@ D|pdXb xYD%=PF0*8X> @"$                 l  Am  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } !} $      MTS SYSTEMS CORP 10-K 11/27/2017&Fiscal Year 2014 Restructuring                          ~  ~  ~ z   (in thousands)  Test  Sensors  MTS  Sensors  Test  Total Balance, October 3, 2015  $-   $-   $-   $-  ~ 2  ~ 2  Restructuring expense  -   -  ~ V  ~    -  ~ ! Payments - - ~     -~ :~ Other adjustments - - ~  B   - -~ BCurrency translation - - ~    ~ ~ ~  Balance, October 1, 2016 $- $- ~    ~ ~ v~ #Restructuring expense~ -~    -  ~ 2 -~ ?Payments - - ~  F  ~ 2~ ~ Other adjustments~  -   -   - -~ Currency translation -~  ~    ~ J~ ~ #Balance, September 30, 2017~ N-~    $-  ~ F~ z ~ =$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<|pdX,=PF0*8X> @rN                            l  p  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } <(} $      MTS SYSTEMS CORP 10-K 11/27/2017&Fiscal Year 2014 Restructuring         (in thousands)~  ~ ) !Accrued payroll and related costs~ v6  ~  ! Other accrued liabilities~   ~ " # Other long-term liabilities~   ~   )!Total severance and related costs~ =~ #$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,)||pdXI}=PF0*8X> @j          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 0.} $      MTS SYSTEMS CORP 10-K 11/27/2017#PCB Group, Inc. Acquisition     (in thousands) . &Consideration paid to PCB shareholders~ f#  and employees 1* "Consideration for PCB closing cash~ r *"Deferred endowment consideration 2~ #Net preacquisition earn-out~ ( Net working capital adjustment 3~  Cash acquired~ &[.&Total estimated purchase price, net of~ 6# cash acquired$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4sg[+VT=PF0*8X> @R    l  &ع  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc Acquisition!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } 6} $ &     MTS SYSTEMS CORP 10-K 11/27/2017#PCB Group, Inc. Acquisition     (in thousands)  Assets   Accounts receivable~ BH   Inventories~  3+ Prepaid expenses and other current assets~ $  Property and equipment~ 3 Intangible assetsCustomer lists~ d "Trademarks and trade names~  Technology~ 'Land-use rights~   Other long-term assets~ *"Total identifiable assets acquired~ Bw Liabilities Accounts payable~ +# Accrued payroll and related costs~ ~*"Non-current deferred tax liability~ A1) Other accrued and long-term liabilities~ N/'Total identifiable liabilities acquired~ ( Net identifiable assets acquired~ Goodwill~ *D4lsg[+y(K`=t% !"#$%5 -Total estimated purchase price consideration,~ 6# !net of cash acquired"$#____________________________1$)Created by Morningstar Document Research.0%(http://documentresearch.morningstar.com/dY=PF0*8X> @%%$$##    l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } +} $      MTS SYSTEMS CORP 10-K 11/27/20173+Pro Forma Financial Information (Unaudited)        , $(in thousands except per share data)~  ~ ~ Revenue~ /  ~ b-   Net income~ n%  ~ rf     Earnings per share Basic(\?ffffff@Dilutedq= ףp?RQ@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0{ocWK@x=PF0*8X> @j        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing 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(4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm 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Information (Unaudited)     (in thousands)  Revenue~ R   Net income~ 7  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(yT{ocWKX=PF0*8X> @*   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations 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FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)!Schedule II Summary of Consolid!Computation of Ratio of EarningAs of September 30 2017U } } $      MTS SYSTEMS CORP 10-K 11/27/2017Operating Leases      Fiscal Year Operating Lease Payments  (in thousands)~ ~ K ~ ~ B$ ~ ~ ~ ~ > ~ ~  Thereafter~ R Total~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4~rf6]5 r=PF0*8X> @b      l  w  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities 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AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 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Reconciliation   0(Income from continuing operations before~ Z~ . ~    ~  ~ s taxes Fixed charges~ B&~ N- ~  0  ~ 6~  Earnings for computation~ ~ z ~    ~ ֻ~     Fixed charges   1)Interest on indebtedness and amortization~ > ~  ~    ~ z~ of debt discount/'Interest expense on rental expense (1/3~ ~  ~  &  ~ $~ ' rent)Total fixed charges~ B&~ N- ~  0  ~ 6~  Lease expense~  W~ X ~  nZ  ~ 6n~ JuInterest income~ ~ & ~    ~ .~ Interest expense~ > ~  ~    ~ z~  Net interest~ :~   ~  n   ~ ~ Dlui]QEIU?a 2 !"#$ !$"____________________________1#)Created by Morningstar Document Research.0$(http://documentresearch.morningstar.com/ P=PF0*8X> @*E$$##""                        l  8X`  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??MTS SYSTEMS CORPORATION!Securities registered pursuant !For the Year Ended September 30Owned PropertyLeased Property PART II!Issuer Purchases of Equity Secu!COMPARISION OF 5 YEAR CUMULATIV!COMPARISION OF 5 YEAR CUMUL (1)!COMPARISION OF 5 YEAR CUMUL (2)!COMPARISION OF 5 YEAR CUMUL (3)!COMPARISION OF 5 YEAR CUMUL (4)Results of Operations Revenue Revenue (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Operations (1) Revenue (2) Revenue (3)Gross Profit (1)Selling and Marketing Exp (1)!General and Administrative (1)!Research and Development Ex (1)Income from Operations (1)Results of Operations (2) Revenue (4) Revenue (5)Gross Profit (2)Selling and Marketing Exp (2)!General and Administrative (2)!Research and Development Ex (2)Income from Operations (2)Results of Operations (3) Revenue (6) Revenue (7)Gross Profit (3)Selling and Marketing Exp (3)!General and Administrative (3)!Research and Development Ex (3)Income from Operations (3)Interest Expense Net (1)Other Income Expense Net (1)Income Tax Provision Ben (1)Net Income (1)Results of Operations (4) Revenue (8) Revenue (9)Gross Profit (4)Selling and Marketing Exp (4)!General and Administrative (4)!Research and Development Ex (4)Income from Operations (4)Results of Operations (5) Revenue (10) Revenue (11)Gross Profit (5)Selling and Marketing Exp (5)!General and Administrative (5)!Research and Development Ex (5)Income from Operations (5)Contractual Obligations!Quarterly Financial Information!Foreign Currency Exchange Rates PART III PART IV PART IV (1) PART IV (2)!Index to Consolidated FinancialConsolidated Balance Sheets!Consolidated Statements of Inco!Consolidated Statements of Comp!Consolidated Statements of Shar!Consolidated Statements of Cash InventoriesProperty and EquipmentWarranty ObligationsEarnings Per Common ShareProperty and Equipment (1) GoodwillIntangible AssetsIntangible Assets (1)!Assets and Liabilities Measured!Assets and Liabilities Meas (1)Other Financial Instruments!Other Financial Instruments (1)!NOTE 4 DERIVATIVE INSTRUMENTS A!NOTE 4 DERIVATIVE INSTRUMEN (1)!NOTE 4 DERIVATIVE INSTRUMEN (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 5 FINANCINGInterest Rate Swaps (1)!Future Maturities of Longterm D!Stockbased Compensation Expense Stock OptionsStock Options (1)!Restricted Stock Restricted Sto!Restricted Stock Restricted (1)Defined Benefit Pension PlanDefined Benefit Pension (1)Defined Benefit Pension (2)Defined Benefit Pension (3)Defined Benefit Pension (4)Defined Benefit Pension (5)Defined Benefit Pension (6)Defined Benefit Pension (7)NOTE 8 INCOME TAXESNOTE 8 INCOME TAXES (1)NOTE 8 INCOME TAXES (2)NOTE 8 INCOME TAXES (3)NOTE 8 INCOME TAXES (4)Share IssuanceTangible Equity Units!NOTE 10 OTHER COMPREHENSIVE INC!NOTE 10 OTHER COMPREHENSIVE (1)!NOTE 10 OTHER COMPREHENSIVE (2)!NOTE 11 BUSINESS SEGMENT INFORM!NOTE 11 BUSINESS SEGMENT IN (1) Fiscal Year 2014 Restructuring Fiscal Year 2014 Restructu (1) Fiscal Year 2014 Restructu (2)PCB Group Inc AcquisitionPCB Group Inc Acquisition (1)!Pro Forma Financial Information!Pro Forma Financial Informa (1)Operating Leases!Schedule II Summary of Consolid!Computation of Ratio of EarningU } U5} $ }  8     MTS SYSTEMS CORP 10-K 11/27/2017 As of September 30, 2017     Subsidiaries   Jurisdiction+ #Instruments & Calibration Sweden AB  Sweden  MTS 1, LLC   Minnesota  MTS 2, LLC   Minnesota%MTS Systems (Hong Kong), Inc. Minnesota#MTS Automotive Sensors GmbHGermany!MTS Holdings France, SARLFranceMTS Japan Ltd. JapanMTS Korea, Inc.Republic of Korea.&MTS Sensor Technologie GmbH and Co. KGGermany3+MTS Sensor Technologie und Verwaltungs-GmbHGermany MTS Sensor Technology KK JapanMTS Systems B.V. Netherlands MTS Systems Holding B.V. Netherlands%MTS Systems (China) Co., Ltd."People's Republic of China MTS Systems Finance C.V. NetherlandsMTS Systems GmbHGermanyMTS Systems Ltd.United KingdomMTS Systems Norden ABSwedenMTS Systems SASFranceMTS Systems Srl Italy$MTS Systems Switzerland GmbH SwitzerlandD lvj^:zCp9N ,h) !"#$%&'()*+,-./012345673 +MTS Testing Solutions India Private Limited  India)!!MTS Testing Systems (Canada) Ltd.!!Ontario, Canada(" MTS Systems do Brazil (inactive)""Brazil#PCB Piezotronics, Inc.##New York$PCB Piezotronics Srl$ $Italy$%PCB Piezotronics Europe GmbH%%Germany &PCB Piezotronics Limited&&United Kingdom'The Modal Shop, Inc.' 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